Tesla (TSLA) bought the land for the factory outside Shanghai in October for $140 million. Tesla has said it intends to produce up to 500,000 cars a year at the 210-acre facility within a decade. Shanghai’s government has said limited production at the plant could begin by the second half of 2019, CNBC reported last month.

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On Friday, Tesla said it plans to start Model 3 deliveries to Chinese customers in March, Reuters reported, with a starting price around $72,000, even after a recent price cut.

“Shanghai Giga production of Model 3/Y will serve greater China region,” Musk tweeted Sunday. The China gigafactory could significantly reduce costs — from transpacific transit and tariffs — for Tesla in a booming local market for electric cars. China is the world’s largest market for autos, and wants 7 million electric or hybrid cars sold a year by 2025, according to Bloomberg News.

Tesla’s first gigafactory opened outside Reno, Nev., in 2016. A second gigafactory in Buffalo, N.Y., started producing photovoltaic modules in 2017. It also plans to build a gigafactory in Europe, possibly in Germany.

Tesla shares have been on a roller-coaster ride over the past 12 months, and are up 0.4% over that time, compared with the S&P 500’s -0.01% 7.7% decline.

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